Gold Price Analysis: XAU/USD confirmed the bearish tone when it printed below $1693.78

Gold is trading 1.63% lower on Wednesday after the risk-tone continued to improve.
There has now been a lower high lower low pattern printed on the 4-hour timeframe.

Rajan Dhall, MSTA FX Daily

XAU/USD 4-hour chart

Gold has been falling off a cliff on Wednesday as the move away from safe-haven assets looks to be all but confirmed. The price has now dipped below USD 1700 per troy level once again. All of this happened while the Nasdaq attacks the pre coronavirus highs and the USD continues to capitulate.

Looking at the 4-hour chart below the price has now printed a lower high lower low wave. The targets on the downside are based on Fibonacci extension and retracement confluences. The purple circled target is the 161.8% extension. This level matches up with an old support level at the consolidation low close to USD 1660 per troy ounce.

The red circled area is the 261.8% extension and this confluences perfectly with the 50% Fib retracement. This seems to be a very strong level and if the market does continue lower it could be where the buyers step in.

Dont forget on the higher timeframes the market is still in a firm uptrend. This move lower could just be a retracement and buyers could step in at the key support zones.

Additional levels

XAU/USD

Overview
Today last price	1699.87
Today Daily Change	-27.81
Today Daily Change %	-1.61
Today daily open	1727.68

Trends
Daily SMA20	1722.31
Daily SMA50	1693.04
Daily SMA100	1637.99
Daily SMA200	1567.15

Levels
Previous Daily High	1745.12
Previous Daily Low	1721.71
Previous Weekly High	1737.78
Previous Weekly Low	1693.78
Previous Monthly High	1765.38
Previous Monthly Low	1670.72
Daily Fibonacci 38.2%	1730.65
Daily Fibonacci 61.8%	1736.18
Daily Pivot Point S1	1717.89
Daily Pivot Point S2	1708.09
Daily Pivot Point S3	1694.48
Daily Pivot Point R1	1741.3
Daily Pivot Point R2	1754.91
Daily Pivot Point R3	1764.71

Author

Rajan Dhall, MSTA

FX Daily

Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.

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